If Sourceforge was a community project involving people from all over
the world, they could just move hosting outside America, but they're
not, they are a commercial enterprise and as such are subject to the
laws of the nation in which they operate.

Idealism is great, and in the Free software world it's very important,
but we also need to be realistic, something Stallman often forgets.

It's not like they caved to simple pressure or imposed sanctions
themselves, they are complying with the local law. Something we all
should do.

Well that sucks big time.
Essentially it is limiting the freedoms of free (as in speech)
software, not only for those in the black listed countries, but for us
who could have been on the receiving end of a great application
developed in one or more of those countries.
Free software was created for everyone, with no discrimination of any type.

I'm sure there will be quite a bit of backlash on this from many
different sources.

My feeling is that Geeknet Inc should move out of the US, but I
understand that would be quite a big undertaking.